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Abstract:

The invention is a system supporting a payment and inspection service used
to securely purchase merchandise on an online sale website. A buyer or
seller can select using the payment and inspection service. The buyer
pays the payment and inspection service, which holds the payment in an
escrow account. The seller ships the item to a store where the payment
and inspection service is located. The buyer goes to the store and, while
being monitored by an agent or employee of the service, the buyer
inspects the merchandise. If the buyer accepts the item, he leaves the
store with the item and the service releases the payment from the escrow
account to the seller. If the buyer does not want to accept the item (he
rejects the item), the item is then repacked and returned to the seller,
and the service returns the payment, less cost of shipping the item back
to the seller, to the buyer.

Claims:

1. A fraud prevention system for securely acquiring a remotely purchased
item, said system comprising:a computer processor having at least one
central processor unit a database memory and at least one input/output
communication port for transmitting and receiving messages, said messages
including a notification message that the purchased item was shipped by
the seller, a notification message that the payment funds related to the
purchased item were received at a payment escrow computer account, a
notification message that the product is ready for a monitored inspection
at an inspection location, and a notification that the purchaser has
accepted or rejected the purchased item after the monitored inspection,
said computer processor transmitting an instruction message instructing
the escrow account to release the payment funds to the buyer or return
the payment funds to seller after the inspection,said payment escrow
account coupled to the fraud prevention system, having a processor,
database memory and an input/output communication port for transmitting
and receiving messages, said messages including the transmission of a
notice of receipt of payment for the purchased item, the instruction to
the payment escrow account to transfer payment funds to the seller if the
buyer accepts the item or to refund the payment funds to the buyer if the
buyer rejects the item,an inspection platform located proximate to said
inspection location that supports the purchased item so the buyer can
inspect the purchased item while being monitored and observed during a
monitored inspection, said monitored inspection permits the buyer to
confirm acceptability of the purchased item or reject the purchased item
while not being given the opportunity to alter or swap the purchased
item.

2. The system of claim 1 wherein said inspection platform is located
proximate to an employee or agent of an inspection service so said
employee or agent can, actively observe and monitor the buyer while the
buyer inspects the item.

3. The system of claim 1 further comprising:a camera for monitoring the
buyer while the buyer inspects the item.

4. The system of claim 1 wherein the buyer pays a fee to use the fraud
prevention system.

5. The system of claim 1 wherein the seller pays a fee to use the fraud
prevention system.

6. The system of claim 1 wherein the option to use the fraud prevention
system is selectable by the seller of said item as an option selectable
on the sale website.

7. The system of claim 1 wherein the option to use the fraud prevention
system is selectable by the buyer of said item as an option selectable on
the sale website.

8. The system of claim 1 wherein the computer processor receives a
notification message that an item has been purchased using the fraud
prevention system.

9. A system for preventing fraud when purchasing a remotely-located
product item comprising:a computer processor server with an input/output
communication port coupled to a computer processor and a data base
memory, said computer processor processes communications including a
message notification regarding shipment of the product item, receipt of
the product item at an inspection location, and receipt of payment by an
escrow account,an inspection platform located proximate to said
inspection location that supports the product item for a monitored
inspection by the buyer, said buyer being able to inspect the purchased
item at or near the inspection platform to confirm acceptability of the
shipped product item but not being given an opportunity to alter or swap
the shipped product item,said computer processor server receiving a
notification message that the product item was accepted or rejected by
the buyer and said computer processor issuing an instruction to said
escrow account to release payment to the seller if product item was
accepted by buyer or return the payment to the buyer if the product item
was rejected by buyer.

10. The system of claim 9 wherein the purchased item is repackaged at the
inspection location and returned to the seller if the buyer rejects the
item.

11. The system of claim 9 wherein an agent of the inspection service
monitors the buyer while the buyer inspects the item.

12. The system of claim 9 wherein a camera is used for monitoring the
buyer while the buyer inspects the item.

13. The system of claim 9 wherein the buyer pays a fee for the service.

14. The system claim 9 wherein the seller pays a fee for the service.

15. The system of claim 9 wherein an option selectable on the sale website
to use the service selected by the seller.

16. The system of claim 9 wherein an option selectable on the sale website
to use the service selected by the buyer.

17. The system of claim 9 wherein the computer processor receives a
notification message that an item has been purchased using the fraud
prevention system.

18. A system for preventing fraud when purchasing a product item
comprising:a computer system having a computer processor, coupled memory
and an input/output communication port, said computer system coupled to
an escrow bank account, that receives a payment for the purchased product
item,an inspection platform located at the inspection location to support
the product item so the buyer can inspect the item at or near the
inspection platform during a monitored inspection to determine
acceptability of the product item or to reject the product item without
allowing the buyer to swap or alter the product item during the monitored
inspection,said escrow bank account system receiving an instruction to
release the payment funds to the seller if the buyer accepts the product
item or refund the payment to buyer if buyer rejects the product item
after the monitored inspection.

19. A system of claim 18 wherein the purchased item is repackaged at the
inspection location and returned to the seller if the buyer rejects the
item.

20. A system of claim 18 wherein an agent of the inspection service
monitors the buyer while the buyer inspects the item.

21. A system of claim 18 wherein a camera monitors the buyer while the
buyer inspects the item.

22. A system of claim 18 wherein the buyer pays a fee for the service.

23. A system of claim 18 wherein the seller pays a fee for the service.

24. A system of claim 18, wherein an option selectable on the sale website
to use the service selected by the seller.

25. A system of claim 18 wherein an option selectable on the sale website
to use the service selected by the buyer.

26. The system of claim 18 wherein the computer processor receives a
notification message that an item has been purchased using the fraud
prevention system.

Description:

RELATED APPLICATION DATA

[0001]This application is a continuation of Ser. No. 11/429,623 filed on
May 5, 2006, which was a continuation-in-part application of U.S.
application Ser. No. 11/115,881 filed on Apr. 26, 2005, and priority is
claimed for this earlier filing under 35 U.S.C. §120. Applicant
further incorporates this previous filing by reference.

TECHNICAL FIELD OF THE INVENTION

[0002]A system for securely purchasing items and avoiding fraudulent
transactions.

BACKGROUND OF THE INVENTION

[0003]The popularity of Internet or online auction and similar sale sites
offering items for sale online has grown considerably in recent years.
Users of these sites can post items for sale as either an auction selling
to the highest bidder or a set sale price. Internet auctions offer a
"virtual" flea market with an endless variety of merchandise available
for sale accessing an Internet website using a computer. In January 2002,
over 32 million Americans visited an online auction site.

[0004]This explosion in e-commerce has fueled a concurrent increase in
fraud. Common frauds include late shipments by the seller beyond the
agreed shipping date. Another common fraud is a completely fraudulent
sale with no merchandise shipped at all. Inferior merchandise or
different merchandise from that stated in the posted listing is another
frequent fraud. Bogus online pay sites used by the buyer to make the
payment with the pay site pocketing the payment is another fraud. Bogus
escrow services have also been set up by the seller, buyer, or a third
party to steal payment for the item. Fraudulent sellers that do not
intend to ship the merchandise is another problem.

[0005]Other frauds frequently encountered on online auctions include bid
siphoning. This occurs when a con artist lures bidders off a legitimate
auction site by offering to sell the same item for less to the bidder.
Shill bidding is another fraud that occurs when a seller bids on his own
auction item to increase price. This has been an increasing problem on
eBay and other auction sites. Bid shielding is another fraud where a
fraudulent buyer submits a very high bid beyond the item's value. This
discourages other bidders from placing bids, but when the bid is nearing
its closing, the fraudulent buyer retracts the bid so that a confederate
can bid at a much lower price and purchase the item for less than it
would have legitimately brought.

[0006]Sale site operators are increasingly concerned with fraud and the
potential for fraud, because fraud has an increasing impact on profits of
the site providers. For example, eBay has lost significant value because
of poor financial performance which is attributable in part to the
fraudulent activities surrounding sales on their website. Both buyer and
seller frauds occur, but it is seller fraud that most concerns users, and
auction fraud is the most common Internet fraud complaint reported.

[0007]One prior art method of addressing this problem is an escrow
service. In theory, a buyer uses an escrow service to pay for the goods.
The goods are not shipped until the escrow services reports receipt of
the funds. The escrow service receives the payment from the buyer and
forwards it to the seller only after the buyer confirms satisfactory
delivery. However, many escrow services are fraudulent, and the false
nature of the service is rarely discovered until the defrauded seller or
buyer has already suffered the loss.

[0008]Furthermore, even with legitimate escrow services, there are
potential problems for the seller. For example, a buyer may return an
item after using it with a claim that it has not been used. For example,
a wedding or prom dress actually worn can be returned with the claim that
it is not used. Books can be read or even photocopied. Products can be
opened or tampered with and parts or accessories removed prior to
delivery to the purchaser or prior to return to the seller for a refund.
A bogus product, such as a TV chassis filled with weight ballast, can be
returned as the genuine item for a refund, or an identical used and/or
broken product returned for a full refund.

[0009]There is a need for a method of ensuring satisfactory delivery of
items ordered online and payment for those items with little or no chance
of fraud by either the seller or the buyer. A method where the item can
be inspected and returned without chances of tampering, alteration, or
switching would prevent most if not all of these types of frauds.

SUMMARY OF THE INVENTION

[0010]The invention is a method for securely inspecting merchandise
purchased online prior to the transfer of the funds and completion of the
online purchase. The buyer or seller can select use of this service. The
service can be paid for by the sale site, a service charge to the buyer
or the seller, or a flat rate to the service operator. After the items
are purchased online, the items are sent to a storefront payment and
inspection site operated by an escrow payment service. The item purchased
is shipped to the inspection storefront by FedEx, UPS, DHL, mail, or
other shipper. The escrow service receives the payment of the purchase
price (and shipping costs) for the item. Notification of shipment and
arrival at the storefront is provided to the buyer, and then the buyer
goes to the storefront and inspects the purchased item within a
predetermined period of time.

[0011]Once at the storefront, the buyer can examine the item purchased and
decide whether to accept it or reject the merchandise. The merchandise
does not leave the inspection site, and buyer has predetermined time
frame to make the purchase decision. The buyer can be monitored by an
in-person representative or by camera to assure nothing is done to the
merchandise. If the buyer accepts the merchandise, the funds held by the
escrow service are released to the seller. If the buyer rejects the
merchandise, the funds held by the escrow service are refunded to the
buyer, sometimes with an appropriate deduction for shipping. The rejected
merchandise is returned to the seller without leaving the control of the
payment and inspection service, so the seller can be assured that the
item is being returned unused, unaltered, and not switched with other
products.

BRIEF DESCRIPTION OF THE DRAWINGS

[0012]The objects and features of the invention will become more readily
understood from the following detailed description and appended claims
when read in conjunction with the accompanying drawings in which like
numerals represent like elements and in which:

[0013]FIG. 1 shows an embodiment of the customer window at the payment and
inspection site.

[0014]FIG. 2 is a process flow schematic representation of the prior art
method for a seller using an online auction website;

[0015]FIG. 3 is a process flow schematic representation of the prior art
method for a buyer using an online auction website;

[0016]FIG. 4 is a process flow schematic representation of the method for
a seller using an online auction website under the invention;

[0017]FIG. 5 is a process flow schematic representation of the method for
a buyer using an online auction website under the invention;

[0018]FIG. 6 is a process flow schematic representation of the prior art
method for a seller using an online sale website;

[0019]FIG. 7 is a process flow schematic representation of the prior art
method for a buyer using an online sale website;

[0020]FIG. 8 is a process flow schematic representation of the method for
a seller using an online sale website under the invention;

[0021]FIG. 9 is a process flow schematic representation of the method for
a buyer using an online sale website under the invention

DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0022]FIG. 1 shows an embodiment for the inspection site in a store
setting. The inspection site 5 can be a counter 10 located in space
rented, leased or franchised to a store by the payment and inspection
service, such as a FedEx Kinko's, Office Depot, Wal-Mart, or other
similar retail store operation. Or the inspection site 5 can be owned by
the service itself as stand-alone operation. The inspection site 5 has a
counter 10 with a clerk 15. The payment and inspection service receives
the shipped merchandise 20, which is made available when the buyer 30
comes to the inspection site 5.

[0023]Typically, the buyer 30 approaches the clerk 5, identifies himself
to the clerk 15, and requests the shipped merchandise 20 so he can unpack
and inspect the purchased item. The clerk 15 provides access to the
shipped merchandise 20 at the counter 10. The buyer 30 unpacks and
inspects the shipped merchandise 420 on the counter 10. While the buyer
30 unpacks and inspects the shipped merchandise 20, the clerk 15 and/or a
camera surveillance system 17 monitors the buyer 30. The buyer 30 is not
left unmonitored until he accepts the shipped merchandise 20. If the
buyer 30 accepts the shipped merchandise 20, then the clerk 15 contacts
the service so that the purchase funds are released to the seller, less
any fees, such as a fee for the service. If the buyer 30 rejects the
shipped merchandise 20, then the clerk 15 repacks the shipped merchandise
20 for return to the seller and contacts the service so that the purchase
funds are refunded to the seller, less any amount required for return
shipping or other fees, such as a fee for the service.

[0024]Although the inspection site is a store location in the preferred
embodiment, numerous alternative embodiments are possible. Rather than a
store, the inspection site can simply be a delivery truck with or without
a built-in inspection compartment. The inspection site can even be at the
buyer's home or shipping location under observation of the delivery
driver or a delivery clerk, or it can be at a shippers' location, such as
a UPS or FedEx shipping facility.

[0025]FIG. 2 shows an example of a process flow for listing an item on an
online auction under the prior art. The process starts at step 105. In
step 110, the seller accesses the auction website over the Internet. In
step 115, the seller registers to sell the item and specify any
particulars. At this point in the process, the seller will select the
mode of payment for the item, specify the shipping procedures, describe
the item, set a minimum bid, and select the duration time for the
auction. In step 120, the seller lists the item for auction. Any fees are
paid and the seller uploads any available pictures if desired. In step
125, the seller will engage in dialogue with bidders. Bidders can ask
questions about the item or terms for payment or shipment of the item or
any other concern by contacting the seller through the auction website,
by email, or by phone if the seller has listed a phone number.

[0026]In step 130, the auction closes at an acceptable price and terms.
The buyer's bid will exceed the minimum amount requested and according to
the terms listed on the auction or as agreed to between the buyer and
seller. In step 135, the seller receives the payment from the buyer under
the payment choice selected, such as cash, money order, credit card,
check, use of an online payment service, or use of an escrow service. If
using an escrow service, the escrow service accepts and holds the payment
until the buyer approves the item. Only after the buyer communicates
approval is the payment tendered to the seller. In step 140, the item is
shipped to the buyer. Under the prior art, shipping is direct to a
buyer's specified address by a shipper, such as FedEx, UPS, DHL, or the
U.S. mail. The item is delivered directly to the buyer without any
intervention by a third party and only after payment for the item or
tendering of the payment to an escrow service. The auction process for
the seller then ends at step 45.

[0027]FIG. 3 is an example of the process flow of the prior art method for
a buyer using an online auction website. The process starts at step 205.
At step 210, the buyer accesses the auction website. In step 215, the
buyer searches the website for the item. This may involve a focused
search using a search function on the website to find specific categories
of items based on a keyword or phrase, or the search may be simply
browsing the website at random and finding an interesting item that
attracts the attention of the buyer. In step 220, the buyer becomes
knowledgeable about the item. This may consist of additional research
about the item on other Internet websites, consultation with reference
books or catalogs, or dialogue with the seller.

[0028]At step 225, the buyer places a bid on the item. This process may
involve an automated bidding process on the website where a maximum bid
amount is specified by the buyer, but the actual amount being bid at any
one time depends on the amount of the next lower competing bid. The
maximum bid is only reached as the bidding approaches the specified
maximum up to the maximum specified. In step 230, the buyer wins the
auction by bidding the highest amount that exceeds any specified minimum
bid. The buyer must then meet the terms of the bid in step 235. This can
include paying by the required mode (e.g. cash, credit card, money order,
cashier check, etc) within a required time frame, meeting any agreed
shipping options, or resolving any warranty or security issues or
concerns (e.g. use of an escrow service). In step 240, the buyer receives
the shipment. If an escrow service has been used, the buyer has to
contact the escrow service after receiving the item so that the payment
is released to the seller. In step 245, the buyer provides feedback on
the auction website. Most auction websites promote leaving feedback on
users of the site, often both for buyers and sellers, to provide comments
on the transaction. The process ends at step 250.

[0029]FIG. 4 shows the process flow under the invention for the seller.
The process begins at step 305. In step 310, the seller accesses the
auction website over the Internet. In step 315, the seller registers to
sell the item and specify any particulars. At this point in the process,
the seller will select the mode of payment for the item, specify the
shipping procedures, describe the item, set a minimum bid, select the
duration time for the auction, and select secured payment and inspection
option. If the payment and inspection service option is chosen, the buyer
will have to comply with the service's terms and select a shipping
destination. In step 320, the seller lists the item for auction. Any fees
are paid and the seller uploads any available pictures and if desired. In
step 325, the seller will engage in dialogue bidders. Bidders can ask
questions about the item or terms for payment or shipment of the item or
any other concern by contacting the seller through the auction website,
by email, or by phone if the seller has listed a phone number.

[0030]In step 330, the auction closes at an acceptable price and terms.
The buyer's bid will exceed the minimum amount requested and according to
the terms listed on the auction or as agreed to between the buyer and
seller. In step 335, the payment and inspection service receives the
payment. In step 340, the seller is notified that the payment has been
received and is valid with funds available and confirms the shipping
address for the store performing the service. The shipping address is
selected by the buyer at the time the payment is made or when making the
bid. The seller ships the item to the address for the specified payment
and inspection service at step 345. The payment and inspection service
may be the shipper (e.g. UPS, FedEx, DHL, etc) or an independent third
party. In step 350, the seller either receives the payment from the
payment and inspection service or the returned item. If the buyer accepts
the item, then the funds are released to the seller. If the buyer rejects
the item, then the funds are returned to the buyer, less return shipping
fees. The process ends at step 355.

[0031]FIG. 4 shows the process flow of the invention for a buyer using an
online auction website. The process starts at step 405. At step 410, the
buyer accesses the auction website over the Internet. In step 415, the
buyer searches the website for the item. This may involve a focused
search using a search function on the website to find specific categories
of items based on a keyword or phrase, or the search may be simply
browsing the website at random and finding an interesting item that
attracts the attention of the buyer. In step 420, the buyer becomes
knowledgeable about the item. This may consist of additional research
about the item on other Internet websites, consultation with reference
books or catalogs, or dialogue with the seller.

[0032]At step 425, the buyer places a bid on the item. This process may
involve an automated bidding process on the website where a maximum
amount is specified by the bid, but the actual amount being bid for any
amount less than that maximum depends on the amount of the next lower
competing bid. The maximum bid is only placed as the bidding approaches
the specified maximum. In step 430, the buyer wins the auction by bidding
the highest amount that exceeds any specified minimum bid. The buyer must
then meet the terms of the bid in step 435. This can include paying by
the required mode (e.g. cash, credit card, money order, cashier check,
etc) within a required time frame, meeting any agreed shipping options,
resolving any warranty or security issues or concerns (e.g. use of an
escrow service or the payment and inspection service). During this step,
the buyer may have the option of selecting the payment and inspection
service or the service may be required by the seller. If used, at this
step, the buyer selects a store with a shipping address that is provided
to the seller for shipping and pays the service by an acceptable means
(e.g. check, credit card, debit card, etc).

[0033]In step 440, the buyer receives notice of shipping and delivery to
the payment and inspection service. The shipping service can provide the
payment and inspection service at a company store, such as at a FedEx
Kinko's store as one example, but shipping can be by any entity
performing that service, such as FedEx, UPS, and DHL, with the inspection
service performed in any convenient store location owned, operated and/or
licensed by the service. In step 445, after notification, the buyer goes
to the store for inspection and receipt of the item. While an employee or
agent of the service is present and observing, the buyer unpacks the item
to inspect while remaining in the store and being observed. In step 450,
the buyer accepts or rejects the item. If the buyer accepts the item,
then the service releases the payment to the seller. If the buyer rejects
the item, then the service issues a credit to reimburse the buyer in an
amount equal to the purchase price less shipping costs. The items is
repackaged at the store and promptly returned to the seller. In step 455,
the buyer provides feedback on the auction website. The process ends at
step 460.

[0034]FIG. 6 shows an example of a process flow for listing an item for
online sale under the prior art. The process starts at step 505. In step
510, the seller accesses the sale website over the Internet. In step 515,
the seller registers to sell the item and specify any particulars. At
this point in the process, the seller will select the mode of payment for
the item, specify the shipping procedures, describe the item, set a sale
price, and select the duration time for the sale listing. In step 520,
the seller lists the item for sale. Any fees are paid and the seller
uploads any available pictures if desired. In step 525, the seller will
engage in dialogue with potential buyers. Buyers can ask questions about
the item or terms for payment or shipment of the item or any other
concern by contacting the seller through the sale website, by email, or
by phone if the seller has listed a phone number.

[0035]In step 530, the sale closes at an acceptable price and terms. There
may be an option available for an offer below that of the listed sale
price that the seller has the option of accepting. In step 535, the
seller receives the payment from the buyer under the payment choice
selected, such as cash, money order, credit card, check, use of an online
payment service, or use of an escrow service. If using an escrow service,
the escrow service accepts and holds the payment until the buyer approves
the item. Only after the buyer communicates approval is the payment
tendered to the seller. In step 540, the item is shipped to the buyer.
Under the prior art, shipping is direct to a buyer's specified address by
a shipper, such as FedEx, UPS, DHL, or the U.S. mail. The item is
delivered directly to the buyer without any intervention by a third party
and only after payment for the item or tendering of the payment to an
escrow service. The auction process for the seller then ends at step 545.

[0036]FIG. 7 is an example of the process flow of the prior art method for
a buyer using an online sale website. The process starts at step 605. At
step 610, the buyer accesses the sale website. In step 615, the buyer
searches the website for the item. This may involve a focused search
using a search function on the website to find specific categories of
items based on a keyword or phrase, or the search may be simply browsing
the website at random and finding an interesting item that attracts the
attention of the buyer. In step 620, the buyer becomes knowledgeable
about the item. This may consist of additional research about the item on
other Internet websites, consultation with reference books or catalogs,
or dialogue with the seller.

[0037]At step 625, the buyer purchases the item by agreeing to pay the
listed price or offering to buy for less than the listed price that the
seller accepts. In step 630, the sale ends with the buyer and seller
agreeing to any special terms or deviation from the listed price. The
buyer must then meet the terms of the sale in step 635. This can include
paying by the required mode (e.g. cash, credit card, money order, cashier
check, etc) within a required time frame, meeting any agreed shipping
options, or resolving any warranty or security issues or concerns (e.g.
use of an escrow service). In step 640, the buyer receives the shipment.
If an escrow service has been used, the buyer has to contact the escrow
service after receiving the item so that the payment is released to the
seller. In step 645, the buyer provides feedback on the auction or sale
website. Most sale websites promote leaving feedback on users of the
site, often both for buyers and sellers, to provide comments on the
transaction. The process ends at step 645.

[0038]FIG. 8 shows the process flow under the invention for the seller.
The process begins at step 705. In step 710, the seller accesses the sale
website over the Internet. In step 715, the seller registers to sell the
item and specify any particulars. At this point in the process, the
seller will select the mode of payment for the item, specify the shipping
procedures, describe the item, set a price, select the duration time for
the sale, and select secured payment and inspection option. If the
payment and inspection service option is chosen, the buyer will have to
comply with the service's terms and select a shipping destination. In
step 720, the seller lists the item for sale. Any fees are paid and the
seller uploads any available pictures and if desired. In step 725, the
seller will engage in dialogue with potential buyers. Buyers can ask
questions about the item or terms for payment or shipment of the item or
any other concern by contacting the seller through the sale website, by
email, or by phone if the seller has listed a phone number.

[0039]In step 730, the sale ends at an acceptable price and terms. In step
735, the payment and inspection service receives the payment. In step
740, the seller is notified that the payment has been received and is
valid with funds available and confirms the shipping address for the
store performing the service. The shipping address is selected by the
buyer at the time the payment is made or when making the bid. The seller
ships the item to the address for the specified payment and inspection
service at step 745. The payment and inspection service may be the
shipper (e.g. UPS, FedEx, DHL, etc) or an independent third party. In
step 750, the seller either receives the payment from the payment and
inspection service or the returned item. If the buyer accepts the item,
then the funds are released to the seller. If the buyer rejects the item,
then the funds are returned to the buyer, less return shipping fees. The
process ends at step 755.

[0040]FIG. 9 shows the process flow of the invention for a buyer using an
online sale website. The process starts at step 805. At step 810, the
buyer accesses the sale website over the Internet. In step 815, the buyer
searches the website for the item. This may involve a focused search
using a search function on the website to find specific categories of
items based on a keyword or phrase, or the search may be simply browsing
the website at random and finding an interesting item that attracts the
attention of the buyer. In step 820, the buyer becomes knowledgeable
about the item. This may consist of additional research about the item on
other Internet websites, consultation with reference books or catalogs,
or dialogue with the seller.

[0041]At step 825, the buyer purchases the item by agreeing to pay the
listed price or offering to buy for less than the listed price that the
seller accepts. In step 830, the sale ends with the buyer and seller
agreeing to any special terms or deviation from the listed price. The
buyer must then meet the terms of the sale in step 835. This can include
paying by the required mode (e.g. cash, credit card, money order, cashier
check, etc) within a required time frame, meeting any agreed shipping
options, resolving any warranty or security issues or concerns (e.g. use
the payment and inspection service). During this step, the buyer may have
the option of selecting the payment and inspection service or the service
may be required by the seller. If the service is used, at this step, the
buyer selects a store with a shipping address that is provided to the
seller for shipping and pays the service by an acceptable means (e.g.
check, credit card, debit card, etc).

[0042]In step 840, the buyer receives notice of shipping and delivery at
the payment and inspection service. The shipping service can provide the
payment and inspection service, such as at a FedEx Kinko's store, but
shipping can be by any entity in that business, such as FedEx, UPS, and
DHL, with the inspection service performed in any convenient store
location with an inspection location or even at the home or other
location. In step 845, after notification, the buyer goes to the store
for inspection and receipt of the item. While an employee or agent of the
service is present and monitoring the buyer, the buyer unpacks the item
to inspect while remaining in the store and being observed.
Alternatively, the inspection location can use a camera surveillance
system to monitor the buyer. In step 850, the buyer accepts or rejects
the item. If the buyer accepts the item, then the service releases the
payment to the seller. If the buyer rejects the item, then the service
issues a credit to reimburse the buyer in an amount equal to the purchase
price less shipping costs. The item is repackaged at the store and
promptly returned to the seller. In step 855, the buyer provides feedback
on the auction website. The process ends at step 860.

[0043]While the invention has been particularly shown and described with
respect to preferred embodiments, it will be readily understood that
minor changes in the details of the invention may be made without
departing from the spirit of the invention.